#1
Which of the following is a consequence of a trade deficit?
Increased domestic production
Increased foreign borrowing
Decreased imports
Increased currency value
#2
Which term describes a situation where a country exports more goods and services than it imports?
Trade deficit
Trade surplus
Trade embargo
Trade barrier
#3
What is the purpose of a trade barrier?
To promote free trade
To restrict trade between countries
To stabilize currency values
To encourage imports
#4
Which organization oversees international trade agreements and disputes?
World Bank
United Nations
World Trade Organization
International Monetary Fund
#5
What does the term 'dumping' refer to in the context of international trade?
Exporting goods below their production cost
Providing subsidies to domestic producers
Placing quotas on imports
Removing trade barriers
#6
Which of the following is NOT a method to reduce a trade deficit?
Increasing exports
Implementing tariffs
Devaluing the currency
Encouraging domestic production
#7
Which theory suggests that countries should specialize in the production of goods and services in which they have a comparative advantage?
Theory of Absolute Advantage
Mercantilism
Theory of Comparative Advantage
Heckscher-Ohlin Theory
#8
What is a 'current account deficit'?
When a country's government spends more than it earns in tax revenue
When a country imports more goods and services than it exports
When a country's currency value is higher than that of other countries
When a country's exports exceed its imports
#9
What is a 'tariff' in international trade?
A tax on imported goods
A subsidy for exported goods
An agreement between countries to reduce trade barriers
A quota on the amount of goods that can be imported
#10
What is the purpose of a 'balance of payments'?
To track government spending
To monitor a country's overall economic health
To regulate interest rates
To control inflation
#11
What is the 'terms of trade'?
The ratio of a country's exports to its imports
The price of one country's currency relative to another
The conditions under which trade agreements are negotiated
The ratio of export prices to import prices
#12
What is the main purpose of a trade surplus?
To strengthen the domestic currency
To increase imports
To encourage foreign investment
To stabilize exchange rates
#13
Which of the following is NOT a factor contributing to economic imbalances in international trade?
Exchange rates
Government regulations
Technological advancements
Income inequality
#14
Which economic theory advocates for government intervention to maintain trade surpluses?
Absolute Advantage Theory
Mercantilism
Comparative Advantage Theory
Laissez-faire Economics
#15
Which international trade agreement seeks to promote economic integration among its member states?
North American Free Trade Agreement (NAFTA)
European Union (EU)
Organization of the Petroleum Exporting Countries (OPEC)
World Trade Organization (WTO)
#16
Which economic concept describes the tendency of a country to specialize in producing goods and services for which it has a comparative advantage?
Elasticity of demand
Balance of payments
Absolute advantage
Comparative advantage